Eike Batista's Oleo e Gas to honor $31.2 million oil field debt

January 3
1:49 AM 2014

Brazilian entrepreneur Eike Batista's Oleo e Gas Participacoes SA promised in a securities filing on Thursday to honor its debts in two offshore oil fields. Oleo e Gas will repay the said debts using financial resources it obtained from an agreement with creditors last week. 

Reuters, citing petroleum firm QGEP Participacoes SA, said Oleo e Gas could lose its 40% stake in the Atlanta and Oliva oil fields in Brazil's Santos Basin if it fails to pay its share of development costs. 

Brazilian oil regulator National Agency of Petroleum, Natural Gas and Biofuels (ANP) ordered Oleo e Gas to show that its financial obligations in the oil fields were up to date, the report said.

Oleo e Gas owes partners QGEP and Barra Energia do Brasil Petroleo e Gas BRL73 million ($31.2 million). QGEP and Barra each own 30% of the oil fields south of Rio de Janeiro, Reuters said. 

Oleo e Gas in a statement released on December 24 said it had reached a deal with the majority of holders in a total $3.8 billion in bonds. It filed Latin America's largest-ever bankruptcy protection petition on October 30, the report said.

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